Online Incorporation Service Of Producer Company tt

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability. Under Companies Act 1956, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as one of the following: (a) Procurement (b) Production (c) Harvesting (d) Grading (e) Pooling (f) Handling (g) Marketing (h) Selling (i) Export

Benefits of Incorporating Producer Company ttx

Members Benefits 4

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.

Tax Benefits 6

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.2

Loan and Investment

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.3

Lower Registration Cost

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.4

No requirement of compulsory Audit

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.5

Savings from lower compliance burden

(a) The members will initially receive the value for the produce or products pooled and supplied as the directors may determine. This amount is given out later either in cash or in kind or by allotment of equity shares. (b) Members will be eligible to receive bonus shares in proportion to the shares held by them. (c) The surplus after provision for payment of limited return and reserves may be given out as patronage bonus, among the Members. Patronage bonus means payment out of surplus income to members in proportion to their respective patronage. Patronage, on the other hand, is the use of services offered by producer companies to their members by participation in their business activities.6

Price Table
Plan - A

Small 2

9000
+ GST 18%

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  • a1
  • a2
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  • a3
  • a4
abcd
  • b1
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Plan - B

Medium

80000
+ GST 18%

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  • ax
  • as
abc
  • ab
  • abc
abcd
  • abcd
  • abcde
Buy Now
Plan - C

Large

10000
+ 18%

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  • ok
  • ok1
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abcd
  • ok4
  • ok5
Buy Now

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Faqs 09
Q.A producer company is governed under which law?

A.The formation and regulation of Producer Company is governed under the provisions of Sections 581A to 581ZL of Companies Act, 1956, read with Companies Act, 2013, and the rules made thereunder.

Q.Who can be member in a Producer Company?

A.A minimum two partners are required to staA person being a “producer” or a “producer institution” (whether incorporated or not) can be admitted as member of Producer Company. Here “Producer” means any person engaged in any activity or connected with or relatable to any primary produce and primary produce of farmer is defined as produce of farmer arising from agriculture including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re- vegetation, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers or produce of persons engaged in handloom, handicraft and other cottage industries or any product resulting from any of the above activities, including by-products of such products.